Café Amazon Achieves Record Sales Despite Margin Pressures
Bangkok – August 1, 2025 (Qahwa World) – Café Amazon, owned by Thailand’s PTT Oil and Retail Business (OR), reported record-breaking sales of 107 million cups of coffee in the second quarter of 2025. The surge in sales was supported by the addition of 40 new outlets across its expanding network.
However, the company is facing growing margin pressures. According to CGS International Equities, the non-oil EBITDA margin is projected to decline to approximately 28%, down from 29.9% in the previous quarter. The dip is attributed to rising selling and marketing expenses.
As one of Thailand’s most recognizable coffee chains, Café Amazon operates on a convenience-driven model, with locations spread across petrol stations, shopping malls, and transit hubs. The chain plays a critical role in OR’s non-oil growth strategy. With over 4,500 stores in 11 countries, CGS International estimates that a 1% increase in the number of Café Amazon outlets could boost full-year EBITDA by 3.4%.
In Cambodia, Café Amazon added five new stores in Q2, maintaining expansion momentum despite early signs of operational challenges. While petroleum sales slightly declined due to seasonal effects, the company continues to push growth across its non-oil business units. However, rising logistical costs and softening consumer sentiment may weigh on Q3 performance.
In 2024, OR had set a target to open 300 new Café Amazon locations annually. According to Amornrat Cheevavichawalkul, Executive Vice President of Research at CGS International Securities (Thailand), most of these openings are planned for domestic markets, which deliver stronger margins compared to international operations.
Nevertheless, the brand opened only 47 new outlets in Q1 2025, falling short of its annual pace.
While Café Amazon remains a key pillar of OR’s diversification strategy, analysts caution that its promotional activities may pose downside risks. CGS estimates that a 10% price cut on coffee products could reduce full-year 2025 earnings by 6.7%.
Looking ahead, OR is also exploring new non-oil business opportunities to replace its now-defunct Texas Chicken operations, which closed last year.
